Leppington Pastoral Co Pty Ltd v Chief Commissioner of State Revenue [2023] NSWSC 463

Supreme Court New South Wales

Medium Neutral Citation: Leppington Pastoral Co Pty Ltd v Chief Commissioner of State Revenue [2023] NSWSC 463 Hearing dates: 20 September 2022 Date of orders: 4 May 2023 Decision date: 04 May 2023 Jurisdiction: Equity - Corporations List Before: Williams J Decision: The plaintiff is entitled to orders revoking the assessment issued by the defendant on 20 February 2017 (as revised on 9 November 2021) under the Duties Act 1997 (NSW). Catchwords: TAXATION – agreement between landowner and developer preserving call options previously granted to developer to acquire land in stages, granting rights to developer to obtain exclusive possession of parcels of the land for the purpose of development without exercising those call options and granting other extensive rights to developer to develop the land – landowner entitled to be paid a sum determined in accordance with an agreed methodology for the parcels of land that the developer acquires or takes exclusive possession of the purpose of the development project – landowner entitled to terminate the agreement and exercise step-in rights if developer commits an event of default – whether the agreement includes a clause recording the landowner's acknowledgment and agreement that the developer "has a beneficial and equitable interest in" the land – whether the agreement effected or evidenced a declaration of trust within the meaning of s 8 of the Duties Act 1997 (NSW) in respect of the land – whether requisite intention to create express trust – held that agreement did not effect or evidence a declaration of trust in respect of the land. CONTRACTS – interpretation – whether parties can be taken to have created an express trust in respect of the land having regard to the language of the agreement and other agreements that the parties entered into at the same time, the nature of the transactions and the circumstances attending the parties' relationship – whether permissible to have regard to clause in agreement expressly disallowing any intention to create a relationship of trustee and beneficiary. Legislation Cited: Duties Act 1997 (NSW), ss 8(1)(b)(ii), 8(2), 8(3), 10, 11, 58(2) Income Tax Assessment Act 1936 (Cth), s 6(1) Taxation Administration Act 1996 (NSW), ss 25, 27(3)(a), 97(1)(a), 101 Cases Cited: Australia Capital Financial Management Pty Ltd v Linfield Developments Pty Ltd (2017)18 BPR 36,683; [2017] NSWCA 99 BB Australia Pty Ltd v Danset Pty Ltd [2018] NSWCA 101 Beneficial Finance Corporation Ltd v Multiplex Constructions Pty Ltd (1995) 36 NSWLR 510 Bundanoon Sandstone Pty Ltd v Cenric Group Pty Ltd (2019) 373 ALR 591; [2019] NSWCA 87 Byrnes v Kendle (2011) 243 CLR 253; (2011) 85 ALJR 798; (2011) 279 ALR 212; (2011) 4 ASTLR 260; [2011] HCA 26 Cherry v Steele-Park (2017) 96 NSWLR 548; (2017) 351 ALR 521; [2017] NSWCA 295 Chief Commissioner of State Revenue v Paspaley [2008] NSWCA 184 Commissioner of Taxes (Queensland) v Camphin (1937) 57 CLR 127; 11 ALJ 104; [1937] ALR 401; (1937) 4 ATD 315; [1937] HCA 30 Construction, Forestry, Maritime, Mining and Energy Union v Personnel Contracting Pty Ltd (2022) 96 ALJR 89; (2022) 398 ALR 404; (2022) 312 IR 1; [2022] HCA 1 Cordon Investments Pty Ltd v Lesdor Properties Pty Ltd [2012] NSWCA 184 CPT Custodian Pty Ltd v Commissioner of State Revenue (2005) 224 CLR 98; (2005) 79 ALJR 1724; (2005) 221 ALR 196; (2005) 60 ATR 371; 2005 ATC 4925; [2005] HCA 53 DKLR Holding Co (No 2) Pty Ltd v Commissioner of Stamp Duties (New South Wales) (1982) 149 CLR 431; (1982) 56 ALJR 287; (1982) 40 ALR 1; (1982) 82 ATC 4125; (1982) 12 ATR 874; [1982] HCA 14 Domson Pty Ltd v Zhu [2005] NSWSC 1070 Ecosse Property Holdings Pty Ltd v Gee Dee Nominees Pty Ltd (2017) 261 CLR 544; (2017) 91 ALJR 486; (2017) 343 ALR 58; [2017] NSW ConvR 56-377; [2017] V ConvR 54-888; [2017] HCA 12 Electricity Generation Corporation v Woodside Energy Ltd (2014) 251 CLR 640; (2014) 88 ALJR 447; (2014) 306 ALR 25; (2014) 7 ARLR 361; [2014] HCA 7 Jackson v Richards [2005] NSWSC 630 John Alexander's Clubs Pty Ltd v White City Tennis Club Ltd (2010) 241 CLR 1; (2010) 84 ALJR 446; (2010) 266 ALR 462; (2010) 2 ASTLR 553; (2010) 4 BFRA 701; [2010] HCA 19 Kondylis v Bacic [2017] NSWSC 66 Korda v Australian Executor Trustees (SA) Limited (2015) 255 CLR 62; (2015) 89 ALJR 340; (2015) 317 ALR 225; (2015) 105 ACSR 498; (2015) 145 ALD 495; (2015) 12 ASTLR 306; (2015) 10 BFRA 182; [2015] HCA 6 Legal Services Board v Gillespie-Jones (2013) 249 CLR 493; (2013) 87 ALJR 985; [2013] HCA 35 Newey v Westpac Banking Corporation [2014] NSWCA 319 Registrar of the Accident Compensation Tribunal v Federal Commissioner of Taxation (1993) 178 CLR 145; (1993) 26 ATR 353; (1993) 117 ALR 27; (1993) 93 ATC 4835; (1993) 117 ATR 353; [1993] HCA 1 Roberts v Investwell Pty Ltd (in liq) (2012) 88 ACSR 689; [2012] NSWCA 134 Saunders v Vautier (1841) 49 ER 282; [1841] 4 Beav 115 SPIC Pacific Hydro Pty Ltd v Chief Commissioner of State Revenue (2021) 113 ATR 24; (2021) 20 BPR 41,275; [2021] NSWSC 395 Texts Cited: D J Farrands, The Law of Options And Other Pre-Emptive Rights (Lawbook Co, 2010) J D Heydon and M J Leeming, Jacobs' Law of Trusts in Australia (LexisNexis Butterworths, 8th ed, 2016) Category: Principal judgment Parties: Leppington Pastoral Co Pty Ltd (Plaintiff) Chief Commissioner of State Revenue (Defendant) Representation: Counsel: D Thomas SC with C Peadon (Plaintiff) S Balafoutis SC with I Young (Defendant)